What does "zoning" refer to in real estate terms?

Zoning in real estate refers to the regulations that local governments put in place to control land use and development within a community. These regulations determine how land can be utilized, outlining specific designations for residential, commercial, industrial, and agricultural purposes, among others. Zoning laws help manage growth, promote orderly development, and protect the character of neighborhoods. They can dictate various factors such as building heights, density, and setbacks, ensuring that land use aligns with community planning goals and safety standards.

While market trends, property valuation, and lending restrictions are important concepts in real estate, they do not pertain to the definition of zoning. Understanding zoning is essential for real estate professionals as it impacts property value, development potential, and compliance with local laws.